China’s economic slowdown on India will be dependent on the country’s policy reforms, says Panagariya
BEIJING: NITI Aayog Vice Chairman Arvind Panagariya has said that the impact of China’s economic slowdown on India will be largely dependent on how the country proceeds on policy reforms. Talking to PTI in Beijing,
Mr Panagariya said this amid the perception that Indian economy can gain from the deceleration of the Chinese economy. He said that Chinese wages have risen quite a bit and that means some of the industries which China was competitive will become less competitive. He said that China’s slowdown is not a big surprise but quite contrary if it continued at 10 per cent for the fifth decade that would be a surprise.
China’s economy has dipped below seven per cent to 6.9 per cent in the third quarter. Mr Panagariya attended round-table on India-China economic cooperation between NITI Aayog and China’s Development Research Centre early this week.
RBI Governor Raghuram Rajan had recently contradicted the government’s assertions that India will not be affected by deceleration of Chinese economy, and said that China’s pain of economic slowdown is India’s pain too.
On RBI Governor’s remarks, Mr Panagariya said that on some of the specifics Mr Rajan may have a point, but how India will be impacted will largely depend on how it proceeds on policy reforms.
